RealNetworks offers half-price songs

CBSMarketWatch

SAN FRANCISCO (CBS.MW) - RealNetworks said Monday night that it's slashing its music downloads to 49 cents.

At the same time, the Seattle-based provider of digital media services and software said it predicts a third-quarter loss to reflect the impact of a new promotion.

RealNetworks
RNWK, -1.91%
said it now predicts a loss of 3 cents to 5 cents a share.

Excluding antitrust litigation expenses, RealNetworks sees a loss of 1 cent to 3 cents a share. Analysts polled by Thomson First Call were expecting a loss of 3 cents a share.

Under the terms of its "Freedom of Choice" campaign, users can download any song in the company's RealPlayer Music Store for 49 cents a piece, down from the usual price of 99 cents each. Apple Computer's
AAPL, -1.92%
iTunes service also charges 99 cents for each song.

RealNetworks said the price would be offered for "a limited time."

Last month, the company announced the launch of its Harmony technology, aimed at allowing consumers download music to all new music devices, including Apple's iPod.

But Apple
AAPL, -1.92%
bristled at RealNetworks' move, comparing it to the actions of a computer hacker. "We are stunned that RealNetworks has adopted the tactics and ethics of a hacker to break into the iPod, and we are investigating the implications of their actions," Cupertino, Calif.-based Apple said, adding that it would look into whether its rival had violated any laws with Harmony. See full story.

Shares of RealNetworks
RNWK, -1.91%
dropped 24 cents, or 4.58 percent, to close at $5 Tuesday, while Apple gained 9 cents or 0.29 percent to $30.87.

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